I’ll keep this brief and to the point: The euro currency is cracking again.
A. The terrible fundamentals underlying the European Union (EU) are beginning to resurface.
B. European Central Bank head Mario Draghi will soon have to become even more aggressive, printing still more euros and pushing rates further into negative territory.
C. The Syrian refugee crisis is taking a further toll on Europe.
D. Britain is looking increasingly likely to leave the EU. Though not a part of the euro, the UK’s pull out of the European Union will be a big blow to the euro.
E. Most importantly, the euro this morning cracked the 1.10 support level. Its next move should be down to at least the 1.07 level.
My recommendation: You already own long-dated call options on the inverse Euro ETF, the January 20, 2017 EUO $28 call options (EUO170120C00028000).
Now let’s add the underlying, EUO. Details below:
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For ALL Members: Using 2.5% of your trading funds, buy shares in ProShares UltraShort Euro (EUO) at the market. Place a good-till-canceled protective sell stop at $23.79. |
Best wishes and stay tuned …
Larry
